Saturday, January 21, 2017

VDX Updates and Weekend Reading...01.21.17

This week's VDX charts suggest weakening in the SPY momentum while VIX and TLT remain firmly in a neutral bracket although TLT is fast approaching oversold levels.
Despite the ongoing  distribution of treasuries which were cited in several posts earlier this week there are still a few credible voices arguing bonds are in store for a run up.
The technical outlook for next week is modestly bearish via our charts and the Trader's Outlook.
This scenario follows in lock step with the SPY Ponzo forecast published earlier in the week although if you check it out carefully it appears there's a high likelihood of a rally at month's end......the technical timing sweet spot where we would most expect it.